StepStone Group has closed a second credit opportunities fund ahead of its $750m (£556m) target, at $1.58bn in commitments.
The fund attracted new and returning limited partners, which the global private markets investment firm attributed to “strong investor demand for flexible credit strategies”.
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Through the StepStone Credit Opportunities Fund II (SCOF II), StepStone will invest in various strategies across the private credit spectrum, predominantly through secondaries and co-investment transactions.
SCOF II will provide investors with diversified exposure to “compelling” credit opportunities across multiple asset classes, building on the strategy of its predecessor fund.
The fund has a flexible mandate, enabling the team to deploy capital “dynamically and selectively” across a range of credit asset classes and situations.
“In an environment characterised by general market and interest rate volatility, as well as periodic dislocations, we believe the opportunity set for credit investors remains attractive and elevated,” said Marcel Schindler, head of StepStone private debt. “SCOF II is well positioned to capitalise on these dynamics across multiple sectors and structures.”
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John Bohill, partner at StepStone Private Debt and SCOF II portfolio manager, added: “Our global sourcing capabilities, combined with our experience navigating multiple credit cycles, position SCOF II to identify differentiated opportunities and seek attractive risk-adjusted returns for our investors.
“We believe this strategy further strengthens and builds the role private debt can play in client portfolios, particularly in periods of market uncertainty.”
The fund held its final close on 31 March. Dechert LLP advised on its formation.
StepStone oversees $220bn of assets under management, with clients including public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as endowments, foundations, family offices and private wealth clients.
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